Express

Corporate Social Responsibility (CSR) Program

Social Standards
• Express - Supplier Code of Conduct
– The Code of Conduct will remain unchanged with CSR
program transition

• Compliance with law

• Minimum wages and benefits
• Maximum working hours
• No prison or forced labor
• No child labor
• Health and safety
• Nondiscrimination
• No corporal punishment
• Freedom of association
• Environment
• Community involvement
• Access
• Sub contracting
 Corporate Social Responsibility - Overview
Current
• All factories treated equally
• Factory audits completed annually
• Corrective action plans issued for all items
not receiving 100% scores
• Compliance and Quality are viewed
separately
• Brand Protection and Trade Compliance
audits completed
• Environmental audits are not in scope
• Factories do not provide production details •
Future
• Factories are tiered and resources allocated
based on volume and risk
• Factory audits completed based on past
performance and risk
• Improvement plans created for high risk
issues
• Compliance and Quality go hand-in-hand to
determine performance
• Audit program focused toward Social
Compliance and Supply Chain Security
• Environmental audits may be performed for
select factories.
Monthly KPI information collected
Corporate Social Responsibility - Tiers
Structure:
• 2018 is a learning year that will inform program evolutions in future years
• Divided into four distinct levels
• Created based on analysis of business volume plus additional risk factor data
collected from multiple sources

Purpose:
• Allow Express to group partners and assign resources to those most critical to our
business
• Tier assignments provide transparency to factories for designation
• Outline minimum standards and requirements for each factory by tier
• Provide roadmap to factories for improvement
Corporate Social Responsibility - Tiers
Platinum
• Factory self-assessments will be required
– Random/periodic audit and document reviews performed at Express’s discretion
– Minimum composite scores required for tier inclusion

• SAC membership required – HIGG verification audits completed at Express requests.

– Improvement plans initiated for poor environmental performance

• Supplier reporting
– KPI’s submitted to Express
– Quality / compliance integrated

• Focus on collaboration
– Improvement plans completed with supplier, factory and Express engagement
– Supplier Education: Outline curriculum and training based on need/industry updates, etc.
– Root cause analysis
Corporate Social Responsibility - Tiers
Gold
• Audits will focus toward Labor Standards and Supply Chain Security
• Factories audits scheduled based on performance:
– Factories performing well will receive less frequent audits as reward

• SAC membership required – HIGG verification audits completed at Express requests

– Improvement plans initiated for poor environmental performance

• Improvement plans
– Plans issued for Express identified areas of improvement
– Supplier managed with Express engagement
– Quality / compliance integrate

• Focus on collaboration
– Supplier Education: Select “high‐potential” factories included in supplier education
Corporate Social Responsibility - Tiers
Silver
• Audits will focus toward Labor Standards and Supply Chain Security

• Factories audits scheduled based on performance:

– Factories performing well will receive less frequent audits as reward

• Improvement plans
– Express will determine if improvement plan should be issued based on risk
Corporate Social Responsibility - Tiers
Bronze
• Factory audits are focused on Code of Conduct conformity.
– Scheduling based on scoring and risk

• Audits assigned Pass / Fail criteria

– Zero tolerance for non-compliance / critical issues
 • EXPRESS SOURCING & LABOR STANDARDS PROGRAM
• Service Provider: ELEVATE
CONTENTS •
• Supplier onboarding
RIZEPOINT
• Factory onboarding - Audit Request
• CAP Management
• AUDIT SCHEDULE AND COORDINATION
• ELEVATE RESPONSIBLE SOURCING STANDARDS (ERSA)
• ELEVATE SUPPLY CHAIN SECURITY AUDITS
• ONSITE AUDIT PROCESS
• CAP MANAGEMENT
• ENVIRONMENTAL AUDITS

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 ABOUT ELEVATE

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ELEVATE’S PURPOSE

We believe in sustainable, balanced and inclusive economic growth.

We believe in an economic model that collectively activates business
and other stakeholders to improve people’s lives and preserve the
planet. This requires a commitment to transparency, visibility and the
thoughtful management of risk and performance. It requires a
commitment to business driven sustainability.

To achieve this purpose:

We engage, we innovate, we inspire, we ELEVATE.

Slide 11 of 51
 ELEVATE PROVIDES SOLUTIONS IN 4 VERTICALS

ELEVATE is the leading business risk and sustainability solutions provider. We deliver improved
organizational performance through sustainability and supply chain assessment, consulting,
program management and analytics.

Assessment Consulting Programs Analytics

• Social and Labor • Advisory • Program Management • Risk Indexes
• Environmental • In-Factory • International • Benchmarking
Compliance • Worker Engagement Development • Equivalency
• Building / Structure • eLearning • Program Support • Segmentation
Safety • Training • Supplier Ownership
• IP / Brand Protection • Research
• Trade Security
• Chain of Custody

Slide 12 of 51
 OUR GLOBAL PRESENCE

Our geographic reach extends to 110 countries.

From a regional hub to a farm or factory in remote corners of the world – we’re united
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ELEVATE PARTNERSHIP ADDS VALUE
Thought Leadership
ELEVATE is known industry wide for thinking
ahead and innovating in ways that are true to
our motto “Business Driven Sustainability”
100% Focus on Responsible Sourcing
ELEVATE, as a company, is 100% focused on
sustainability and supply chain labor, environment
and security practices. We do not offer quality
assurance services or testing. We do offer
improvement services including in-factory
consulting, training, eLearning etc.
Strong Reputation
ELEVATE has a strong reputation amongst
global retailers and brands for innovation,
integrity, flexibility, service and quality
execution
Custom Client Programs
ELEVATE was built on the delivery of client-
specific / customized programs and is well
placed to meet your unique needs
Slide 14 of 51
Integrity and Quality is at our Core
Our rigorous quality assurance standards and
auditor training protocols ensure our team are
best in the industry, and posing no risks on
your behalf
Leading Client Service Metrics
Our client service is consistently ranked the
best in the industry: 71% of our clients said
they liked our service better than other service
providers (with an additional 26% saying we
were on par). Over 90% would recommend our
services to a colleague or company
Unique Analytics and Trending
Our structured SQL database and Tableau
platform support live analytics on program
effectiveness and benchmarking
Flexibility and Nimbleness
ELEVATE is vertically integrated, allowing us to
quickly calibrate our teams to evolving client
expectations and trends
 SOURCING & LABOR STANDARDS

Audit
Provider Elevate is the new Social Audit provider for EXPRESS

Scope
Social + Security Audits: conducted through ELEVATE

Program Audit Tools/benchmarks: ELEVATE ERSA + Security Audit -

and Legal Requirements

Transition to Elevate will occur March 2018

Timing
**Audit Cycle times: will vary based on factory performance

Guidance Detailed guidance will be provided over the next few

2
6 weeks

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 SOURCING & LABOR STANDARDS

All factories producing EXPRESS Branded products are required to

complete the ELEVATE Responsible Sourcing Standard Assessment
(ERSA) + Supply Chain Security before they can be approved for
production.
PROGRAM STEPS:
1. Supplier onboarding (By EXPRESS)
2. Factory onboarding (By all Suppliers via Rizepoint)
• Instructions will be provided in Rizepoint
3. ERSA Assessment + Security Audit
4. Corrective Action Plan (CAP) via Rizepoint + eLearning

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 SOURCING & LABOR STANDARDS

SUPPLIER ONBOARDING:
THE PROCESS TO ONBOARD NEW SUPPLIERS WILL
REMAIN THE SAME AS IN PAST.

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 RIZEPOINT:
All Supplier and Factory activities will be housed and
managed in a web base system called Rizepoint.
https://express.rizepoint.com

Slide 18 of 51
SUPPLIER – LOGGING INTO RIZEPOINT
EXPRESS-Rizepoint Homepage –
• This homepage will be a “One-Stop-Shop” for instructions, task overview as well as task due dates. In addition, access to the
most recent audits performed on factories will be available.
• Guides or Instructions are provided under the “Welcome – Suppliers!” message.
• Login details will be sent to all existing and new suppliers by Rizepoint in the coming days.

Slide 19 of 51
 FACTORY ONBOARDING VIA RIZEPOINT

Task 1:
Update
-This slide is an example of a
information couple of the tasks that will be
managed and completed in
Rizepoint by Suppliers.

-There will be tasks that need to

be completed. All of the
instructions, due date, as well
as other information will be
available in the tasks and on the
Rizepoint website.
Task 2:
Create the -Having these tasks in Rizepoint
factories
will allow increased visibility,
streamlined onboarding and a
platform to request and review
Elevate assessments.

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REQUESTING AN AUDIT VIA RIZEPOINT

New Suppliers:
Once a Supplier is approved by EXPRESS, their profile will be
created in Rizepoint and this will be followed by an email from
Rizepoint with next steps.
New Suppliers are responsible for:
1. Entering new Locations (Factory details) in
Rizepoint
2. Ensuring that existing Locations are always up to
date
3. Requesting Initial Audits
4. Managing CAPs

Existing Suppliers:
Existing Suppliers are being added in Rizepoint is this
transitional period. Already onboarded/approved Suppliers are
responsible for:
1. Entering new Locations (Factory details) in
Rizepoint
2. Ensuring that existing Locations are always up to
date
3. Requesting Initial Audits
4. Managing CAPs

Remarks:
Cycle and Follow-up audits will be requested by
EXPRESS.

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SUPPLIER WORKFLOW IN RIZEPOINT

It is expected that Suppliers will manage their factory

base within Rizepoint as well as Initial Audit Requests
and CAP Management. This workflow provides an
outline on how the factory onboarding and Initial Audit
Request process works.

Once factories are entered into Rizepoint and Initial

Audits are requested by Suppliers and approved by
EXPRESS, then ELEVATE proceeds with audit
coordination and scheduling via email.

EVT will update Rizepoint regularly during audit

coordination/scheduling. Once the audit is executed,
ELEVATE will then upload the audit report to Rizepoint
to initiate the CAP Management engagement.

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 AUDIT COORDINATION/SCHEDULING:

Slide 23 of 51
 STEPS TO COMPLETE THE AUDITS

ELEVATE SCHEDULING:

During the scheduling process, ELEVATE will provide the Supplier and Factory with the Audit
Notification, including the audit window. ELEVATE will also provide guidance as to how to best
prepare for the audit, including Document Checklist, ELEVATE Code of Ethics (gift, integrity policy),
Facility Profile to confirm address, number of workers, production activities, etc. This is also an
opportunity for the factory to address any blackout date, etc. in order to avoid any ‘access deny’.
The EXPRESS COC and the ELEVATE ERSA Guide will also be provided.

Both the Factory and the Supplier will be included on this e-mail. It is EXPRESS expectation that
Supplier will support ELEVATE during the coordination/ scheduling process to get the audits
executed timely.

See next slide for a sample e-mail.

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Slide 24 of 51
 STEPS TO COMPLETE THE AUDITS
SAMPLE AUDIT NOTIFICATION E-MAIL:

Emails will come from ELEVATE Local or Regional Coordinators.

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 ELEVATE AUDITS

Slide 26 of 51
 SOURCING & LABOR STANDARDS
The core of the EXPRESS SOURCING & LABOR STANDARDS Program remains their Code of Conduct. Any
measure [i.e. Legal] against the Code of Conduct, the higher standard takes precedence. More details on
the EXPRESS Sourcing and Labor Standards Program can be accessed via EXPRESS website:
https://www.express.com/g/sourcing-and-labor-standards

Express sources its products

from countries all over the
world, and we insist that our
associates and
product suppliers in our direct
supply chain comply with all
applicable laws, rules and
regulations. Our approved
suppliers must verify in
writing that they follow the
EXPRESS Supplier Code of
Conduct.
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ELEVATE RESPONSIBLE SOURCING ASSESSMENT

• The ELEVATE Responsible Sourcing Assessment (ERSA) standard is:

• Accompanied by a set of supporting tools and guidance.
• Designed with focus on transparency and supports immediate integration of worker voice insight.
• Supported by an additional set of resources and processes including:
(1) Audit tool aligned with changing risk landscape and key standards
(2) Audit grading using the ELEVATE standard
(3) KPI reporting and analysis to support program review, quality and integrity management.
(4) Enhanced data analytics and reporting on program performance, including benchmarking, in:
(a) the audit report and
(b) in ELEVATE’s online customer portal systems.

Slide 28 of 51
ELEVATE RESPONSIBLE SOURCING ASSESSMENT (“ERSA”)

The standard is developed based on local and national

laws, International Labor Organization (ILO) conventions
and benchmarked against industry protocols including:

• Electronics Industry Citizenship Coalition (EICC)

• Ethical Trading Initiative (ETI)
• Business for Social Compliance Initiative (BSCI)
• Global Social Compliance Program (GSCP)
• ICTI Ethical Toy Program
• Sedex SMETA 6.0 framework
• Worldwide Responsible Accredited Production
(WRAP)
• And more …

Slide 29 of 51
ERSA – KEY FEATURES

Supporting documents and tools include the following …

• Factory Profile
• Supplemental Data Sheet
• Audit Report
• Photo Form(s)
• Corrective Action Plan
• Checklist
• Grading / Red-Flags

• ELEVATE proprietary training

• Field Instructions
• Report Writing Guide
• Transparency Protocol
• Working Hours / Pay Sheets
• Worker Interview Guides
• Notes Documents etc. …

Slide 30 of 51
THE ERSA REPORT SUPPORTS BENCHMARKING FOR FACTORIES

• Audit reports will include benchmarking insight:

• On topics such as wages, working hours etc.
• Vs. other factories in the same category and country
• Showing relative performance alongside peers
• As well as year-on-year trends

Slide 31 of 51
 ELEVATE AUDITS
ELEVATE Responsible Sourcing Standard (ERSA):

Social Audits will be benchmarked against EXPRESS Supplier Code of Conduct.

The Audit Tool which will be used to measure against the EXPRESS Code will be the ERSA
standards which are designed to cater to specific conditions and hazards concerning different
types of facilities in a wide variety of industries. It is intended to promote continuous improvement
and to highlight performance and proactive management of social compliance.

Legal Requirements: in addition to the EXPRESS Code and ERSA, local labor laws are also
considered. The requirement, which affords the highest level of protection, is applied.

During the Audit coordination/Scheduling process,

ELEVATE will provide both the Supplier and factory with a
full copy of ERSA provisions and indicators.

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ELEVATE RESPONSIBLE SOURCING ASSESSMENT

15 key provisions to measure performance.

Transparency and Business Integrity Wages & Benefits

Management Systems Hours of Work

Hiring, Disciplinary & Termination Health and Safety

Young Workers and Child Labour Environment

Forced Labour Sub-Contracting

Harassment or Abuse Homework

Non-Discrimination
During the Audit Coordination/Scheduling process,
Freedom of Association & Grievance Mechanisms both the Supplier and factory will be provided with
a full copy of ERSA Provisions and indicators.
Foreign Migrant Labour

Slide 33 of 51
 ELEVATE AUDITS
ERSA:
Here is an example of the Force Labor Provisions with additional indicators:

5. Forced Labour: Prison, indentured, bonded, involuntary, slave labor, or labor obtained through human
trafficking shall not be used.

5.1 The facility has a written policy prohibiting forced, bonded, indentured, and prison labour; this policy is
communicated to all employees.
5.2 The facility does not use any type of involuntary labour who are trafficked, prisoned (not in compliance
with ILO Convention 29), bonded, or indentured, either at the facility itself, or a broker.
5.3 The employees have the right to enter into and to terminate their employment freely without being
penalized financially, the threat of physical or mental coercion or facing unlawful notice periods.
5.4 Employees shall not be obligated or forced to work by a family member, associate or friend for any reason.
5.5 Employees retain possession or control of all original identity documents, such as passports, identity
papers, travel documents, and other personal legal documents. (Exception: Documents stored for safekeeping
with explicit consent from employee and the facility has a system allowing the employee to retrieve their
documents at any time without restrictions.) –
Etc…

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 ELEVATE AUDITS
C-TPAT:

Security Criteria for C-TPAT Foreign Manufacturers: the ELEVATE Security Assessment covers the minimum
security criteria which are fundamentally designed to be the building blocks for foreign manufacturers to
institute effective security practices designed to optimize supply chain performance to mitigate the risk of
loss, theft, and contraband smuggling that could potentially introduce terrorists and implements of terrorism
into the global supply chain. The assessment is comprehensive and will cover areas such as Business Partner
Requirements, Container and Trailer Security, Physical Access Controls, Personnel Security, Procedural
Security, Physical Security, Information Technology Security, Security Training and Threat Awareness.

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 PROCESS REVIEW: COORDINATION,
REPORT APPROVAL, CAM

Slide 36 of 51
 PROCESS REVIEW

EXPRESS reviews Factory signs

ELEVATE ELEVATE Notification
and approves Assessment is
Supplier Initial Audits retrieves audit e-mails Letter,
conducted
requests request from Scheduling submits to
(Cycle and Follow within 30 days
Initial Audit in RP and Package** ELEVATE &
up audits of original
RP creates record and window to confirms
requested by request
in Aruvio* Supp./factory Assessment
EXPRESS) window

Once the audit is executed then:

ELEVATE uploads CAP Management starts
Audit Report to once EXPRESS has
Rizepoint for reviewed and approved
EXPRESS review and the Audit Report.
approval Rizepoint e-mail to
Supplier to start CAP
process
Supplier Manages the CAP
CAP Development:
Phase 1: initial 30 days to
provide a solid Plan
Phase 2: Supplier provides
Actions Taken with proof.

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Slide 37 of 51
 ELEVATE AUDIT
• Elevate Onsite Audit
• Opening Meeting: The opening meeting with management is an extremely important part of the process because
it sets the tone for the entire audit. A well-executed opening meeting can have a critical impact on the flow and
duration of the audit. Specifically, during the opening meeting, ELEVATE staff will:
• Show respect and courtesy to management
• Introduce each member of the Audit team
• Establish appropriate communication channels
• Review the scope and goals of the visit
• Provide management with a specific list of records that will be needed for review
• Request a site floor plan
• Discuss the audit team’s role as an objective verifier only
• Present and discuss EXPRESS’s COC as well as an overview of ERSA + Security if applicable
• Interview site management about operational processes
• Present the ELEVATE Code of Ethics to be signed by both ELEVATE and Factory reps.

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Slide 38 of 51
 ELEVATE AUDIT
• Elevate Onsite Audit

• Facility Tour: In determining compliance, information gathered through visual observation is critical.
For this reason, ELEVATE staff are trained to do a detailed and in-depth observation/review of the
workplace health, safety and environmental conditions, with a focus on how those conditions impact
workers. If something doesn’t seem right, a more detailed analysis will be undertaken, which might
include additional document reviews and/or worker interviews.

• Worker Interviews: Confidential interviews with workers are fundamental to the success of the audit
because they provide the purest source of information about how working conditions impact worker
well-being. Specifically, ELEVATE staff are expected to crosscheck information gathered from other
sources, detect potential areas of concern, and to assess the awareness level of the workers during
each interview. ELEVATE role during the audit is not to educate, debate, or argue with workers for any
reason; rather the focus remains on objectivity.

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Slide 39 of 51
 ELEVATE AUDIT
• Elevate Onsite Audit
• Document & Records Review: Document and record review is undertaken for a number of reasons,
including gathering information regarding wages and benefits, hours of work, company policies,
discrimination, health & safety, child labor, and other areas. Prior to reviewing records, ELEVATE staff must
first familiarize themselves with the procedures and systems of the site. As well as checking the content of
the documents and records, it is also important to assess how these are controlled to ensure ongoing
compliance.
• Data Analysis and Cross Checking: ELEVATE strives to be objective and make sound, unbiased judgments
concerning compliance during all audits. One of the most important parts of this is the cross checking of
information gathered during each part of the audit. Without systematically comparing and crosschecking
information gained from worker interviews, management, document & record review, and visual
observation, important findings will be missed. Thus, ELEVATE staff are specifically trained to authenticate
documentation provided throughout the audit process. In some cases, record falsification by sites
underscores the importance of this element of the audit and it is critically important that factories remain
transparent and collaborate so that ELEVATE may fully understand any challenges and communicate to
EXPRESS in a clear and concise manner so that they may further define the best continuous improvement
path.

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 ELEVATE AUDIT
• Elevate Onsite Audit

• Closing Meeting: Once the audit is complete, a closing meeting will be held with site management.
During this meeting, management will be provided a final opportunity to clarify site policies and
practices as they relate to each non-compliance issue. This is of particular importance when
inconsistent and/or unclear data has been collected. Generally, the closing meeting includes:
• Acknowledgement of site management cooperation
• Restatement of the purpose of the audit
• Presentation and review of a draft list of each non-conformity.
• Discussion of recommended corrective action steps

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 RIZEPOINT REPORTING
• Elevate Reporting
• Supplier will get the Audit Result in 7
business days through Rizepoint.

• Once EXPRESS has reviewed and

approved and audit, the next step will
be CAP Management.
• The Supplier will receive an auto e-
mail from Rizepoint; this will include a
copy of the Score Card Report or Audit
Report with findings.
• The e-mail will also provide
instructions as to what next steps
need to be taken to manage the CAP
in Rizepoint. See next slide for
sample email.

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Slide 42 of 51
 CAP MANAGEMENT

Slide 43 of 51
 RIZEPOINT REPORTING

• CAP Management
• Suppliers will receive an auto e-mail from Rizepoint with next steps on how to manage the CAP in Rizepoint.

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CAP MANAGEMENT

Phase 1: CAP Development – initial 30 days

• Once the CAP starts, the Supplier will have 30 days to submit a sound CAP or Actions to be Taken via Rizepoint.
EXPRESS will review/approve the actions to be taken.
• During these initial 30 days, the Supplier should focus on developing a solid and credible resolution plan, timeframes
and an understanding of root causes of the non-compliance.
• To provide additional support, the Suppliers will also be provided with access to 3 eLearning courses closely
associated with the audit findings. Access to eLearning will be provided via an email notification to Supplier. A CAP
Development Guidance Tool will also be provided.
• Phase 2: Desktop Review and Support / Actions Taken – next 30 days.
• ELEVATE solicits evidence for CAP remediation within CAP management service period. ELEVATE will support via e-
mail and phone calls.
• ELEVATE will review supporting evidences (not validate) and approve whether the CAP has been fulfilled. EVT will
also note what findings need to be validated via onsite follow ups (i.e. excessive OT hours or wages).
• Non responsive Suppliers will be escalated to EXPRESS for next steps.
• CAP management is concluded by a report per factory with supporting evidence of closure of desktop review.
• The EXPRESS CAP Management approach is based on root cause analysis and implementation of preventative
measures. It is not expected that all issues will be resolved within 60 days. This is meant to be a continuous and
sustainable remediation process.

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CAP DEVELOPMENT GUIDANCE

What is the purpose of developing a Corrective Action Plan (CAP)?

Now that your factory has been audited, EXPRESS expects that actions are taken to correct any non-compliant issues or violations found
related to their expectations or local laws. The most common way of communicating what action steps will/should be taken is using a
Corrective Action Plan (CAP). The purpose of a CAP is to ensure the Supplier/factory and EXPRESS agree on how to correct the
noncompliance that has occurred and prevent this from reoccurring in the future.
CAPs are developed in response to each individual finding. There are usually 4 key elements to a CAP:
• 1. Violation finding
• 2. Underlying root cause
• 3. Proposed immediate action
• 4. Proposed preventive action(s)

How do you create a good CAP?

A good CAP should include:
• 1. An immediate action to fix the violation right away and remove immediate risks; and
• 2. A preventive action to address the root cause of the violation, ensuring it does not happen again.
• In order to create a longer term preventive action, you must first understand why the violation truly occurred. Was is just an isolated
mistake or was it something deeper and more complicated? In order to make this distinction, it is common to use a method called, Root
Cause Analysis.

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CAP DEVELOPMENT GUIDANCE

Root Cause Analysis: A Path to Sustainable Improvement

A root cause is the underlying reason(s) the violation occurred. Therefore, if you expect to fix the issue in
a dependable and sustainable manner, you must understand the root cause. Ultimately, this is what you
should be striving for and what is expected by your buyers. The root causes can typically be narrowed
down to one or two of the following issues:

• Lack of executive commitment

• Inadequate knowledge or
awareness
• Unclear accountability
• Lack of policies & written
procedures
• Poor implementation practices
• No process to ensure ongoing
monitoring & continuous
improvement

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 CAP DEVELOPMENT GUIDANCE

What else is important to know about CAP development?

There are four important steps to effective CAP implementation:
• 1. Assign responsibility: Designate an individual responsible and accountable for ensuring • 3. Communicate results:
immediate and preventive actions are implemented as intended. This individual should be at a Communicate regularly the
sufficient management level to have the authority to make the necessary changes, e.g., a senior status of the CAP to all key
manager on the Health and Safety team. stakeholders, including
workers, supervisors,
• 2. Set an aggressive but reasonable timeline for completion: The timeline should include final managers and customers.
deadlines for which actions need to be completed that are in line with any expectations This includes notification
previously communicated, as well as interim deadlines and actions to ensure progress is on once the CAP has been
track. closed.
Corrective Action Plan example* • 4. Monitor ongoing progress:
Ongoing monitoring ensures
immediate and preventive
actions remain in place and
that policies, procedures and
tools are being implemented
as designed.

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 RIZEPOINT REPORTING
• CAP Management
• Once the Suppliers log back into Rizepoint, they are able to manage CAPs on the Actions Plans tab.
• Detail instructions on how to manage CAP will be provided during the CAP process.

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 ENVIRONMENT SERVICES OVERVIEW

Slide 50 of 51
 Introduction to ELEVATE’s Environment Service
ELEVATE environment lessons: (also Environment assessments
topics in Higg Environment Modules 2.0)
Experience in both social and environment assessments
 Environment Management Systems Increasing demand on standalone environment assessments
 Energy Use & GHG Emissions Initiative-focused programs (e.g. water sustainability, chemical management, etc.)
 Water Use
 Wastewater/ Effluent
 Air Emissions
 Waste Management
 Chemicals Training and capacity building support for organizations, brands, and suppliers
Comprehensive eLearning library on environment lessons
Topic specific webinar trainings
In-person trainings by ELEVATE field experts

Supply chain research and consulting projects

Risk assessment studies based on environment and social challenges
 climate change impacts, water scarcity issues, commodity risks, social risks
Desktop or onsite research and analysis
Benchmarking studies on program strengths and weaknesses

ELEVATE partnership with Sustainable Apparel Coalition (SAC)

Conduct verification for Higg 2.0 Facility Environment Modules (FEM)
Internal team of 15+ SAC approved trainer and verifiers
Global coverage for Higg verifications in EMEA, China, South & Southeast Asia, Americas
Active on several SAC developmental streams
How to Higg training to suppliers and verifiers

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 Higg Verification Background

 ELEVATE became an SAC member in 2015. We are involved in several

development streams of the SAC, including Social and Labor
Convergence and Higg 2.0 Facility Environment Modules (FEM)
Verification work.

 We have been a part of the Higg verification effort since its pilot launch
in summer of 2015.

 SAC has hosted two rounds of Higg verification training in 2015, both of
which ELEVATE has sent staff to train as verifiers and trainers.

 Currently, we have over 15 SAC approved verifiers internally covering

Higg 2.0 verification work in China, EMEA, Southeast Asia, and
Americas.

 We also have SAC approved Higg trainers to deliver Higg related

training to suppliers and verifiers.

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 Higg Facility Environment Module (FEM) Structure

HIGG FEM HAS 7 SECTIONS: EACH SECTION HAS 3 LEVELS OF QUESTION

TYPES:

1. Environmental management systems

2. Energy use and GHG emissions Level 3
•Best practices and
3. Water use Level 2 performance
•Planning and
4. Waste water/effluent management of
Level 1 environment
systems
5. Emissions to air •Environmental
awareness and
6. Waste management basic
understanding
7. Chemical management
Meeting Level 1 is a prerequisite for facilities to engage in
2
continuous improvement. ELEVATE to focus supplier’s
6 performance plan on meeting Level 1 criteria first.

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 Higg Verification Process

Self
Follow up visit
assessment Verification Verification Performance
Site visit or desktop
questionnair Request preparation Plan follow up
review
e
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
(+1 to 2 weeks) (+2 to 4 weeks) (+2 to 4 weeks) (+60 days) (+75 days)
Facilities to fill their Facility to share with Site visit  Opening meeting Verifier to follow up by Verifier to collect
FEM Self- EVT their Self- preparation:  Documentation review email and/or phone to evidences of
Assessment Assessment  Discussion with personnel make sure the facility implementation of the
Questionnaire on Questionnaire so Scheduling  Site observation is working on the actions
Higg.org verifiers can better (announced or semi  Review of the performance implementation of the
prepare for onsite announced  Preparation of first draft of action plan and check Site visit or desktop
verification recommended by performance plan if there are any review to validate the
SAC)  Closing meeting questions or blocking criteria
points.
EVT to send Facility Preparation of the verification Update of the report by
document checklist report by the verifier. the verifier
for verification
preparation Verified report is posted by the Facility to update its FEM
manufacturer and they will change on Higg.org, upload the
Facility to prepare the status from self assessment to final verification report
the documentation onsite / off-site verified. and change the status
for review from self assessment to
onsite verified

2
6

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TEAMWORK THAT DRIVES IMPACT

The ELEVATE Leadership Team Looks Forward to Working with EXPRESS Suppliers!

Mark Jones Ian Meghan Quinlan

Darren Cunliffe Spaulding Davis Guan
Richard Welford Kevin Franklin
Andrew Savini
Sherrie Esposito Ganesh Balakrishnan
Raymond Huang Bronwyn Alexander
Patrick McKeller

55

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 Shenzhen
Room CDEF, 8/F International Trade Commercial
Building, No 3005 Nanhu Road, Luohu, Shenzhen 518000, China
达岸咨询（深圳）有限公司ELEVATE (SHENZHEN) Limited
中国深圳市罗湖区南湖路3005号国贸商业大厦8楼CDEF室
Tel: +86 755-8214-4529
Fax: +86 755-8214-4530

Local Operations Support:

Raymond Huang rhuang@elevatelimited.com

Global Account Management:

Amy Waynik awaynik@elevatelimited.com

Elevate Hong Kong Holdings Limited

Arion Commercial Building, 2-12 Queen's Road West, Hong Kong
香港皇后大道2-12號，聯發商業中心19樓1室

Slide 56 of 51
 Dhaka
DOM-INNO House, 6th Floor, House # 13
Road # 07, Block – F, Banani, Dhaka, Bangladesh
Tel: +8802 55042310-11, +88019 38886939

Local Operations Support:

Mamun Zaman mamunzaman@elevatelimited.com

Global Account Management:

Amy Waynik awaynik@elevatelimited.com

Elevate Hong Kong Holdings Limited

Arion Commercial Building, 2-12 Queen's Road West, Hong Kong
香港皇后大道2-12號，聯發商業中心19樓1室

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 Ho Chi Minh City
Room 1901, 19th Floor, 37 Ton Duc Thang Street, Ben Nghe Ward,
District 1, Ho Chi Minh City, Vietnam
Tel: +84 (08) 22216684
Fax: +84 (08) 22202201

Local Operations Support:

Nu Nguyen nu.nguyen@elevatelimited.com

Global Account Management:

Amy Waynik awaynik@elevatelimited.com

Elevate Hong Kong Holdings Limited

Arion Commercial Building, 2-12 Queen's Road West, Hong Kong
香港皇后大道2-12號，聯發商業中心19樓1室

Slide 58 of 51